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ASO or POOL: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Academy Sports and Outdoors, Inc. (ASO - Free Report) or Pool Corp. (POOL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Academy Sports and Outdoors, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Pool Corp. has a Zacks Rank of #2 (Buy). This means that ASO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASO currently has a forward P/E ratio of 5.95, while POOL has a forward P/E of 24.49. We also note that ASO has a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POOL currently has a PEG ratio of 2.45.
Another notable valuation metric for ASO is its P/B ratio of 2.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, POOL has a P/B of 16.08.
These are just a few of the metrics contributing to ASO's Value grade of A and POOL's Value grade of D.
ASO has seen stronger estimate revision activity and sports more attractive valuation metrics than POOL, so it seems like value investors will conclude that ASO is the superior option right now.
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ASO or POOL: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Academy Sports and Outdoors, Inc. (ASO - Free Report) or Pool Corp. (POOL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Academy Sports and Outdoors, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Pool Corp. has a Zacks Rank of #2 (Buy). This means that ASO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASO currently has a forward P/E ratio of 5.95, while POOL has a forward P/E of 24.49. We also note that ASO has a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POOL currently has a PEG ratio of 2.45.
Another notable valuation metric for ASO is its P/B ratio of 2.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, POOL has a P/B of 16.08.
These are just a few of the metrics contributing to ASO's Value grade of A and POOL's Value grade of D.
ASO has seen stronger estimate revision activity and sports more attractive valuation metrics than POOL, so it seems like value investors will conclude that ASO is the superior option right now.